Trustworthy Chapter 12 Bankruptcy Attorneys in Chico-Redding

Chapter 12 is ideal for family fishermen and farmers who need to file for bankruptcy. It lends more flexibility in making payments than Chapter 13, and it is cheaper and less complex than Chapter 11. We can help you determine if this is the right choice for your needs.

What Is Chapter 12 Bankruptcy?

Our attorneys collect necessary financial documents from you to file with the court papers. When we file, an automatic stay goes into effect. This prohibits creditors from contacting you or making further collection attempts. If you have family members who are also responsible for shared business credit cards or other accounts, they are protected. Creditors may not go after them individually for debts incurred for your business. There is a creditor meeting after the petition is filed, and we propose a payment plan to reorganize your debts. What makes this arrangement beneficial for you as a farmer or fisherman is that you make seasonal payments rather than monthly payments.

Do I Qualify for Chapter 12 Bankruptcy?

Only family fishermen and family farmers qualify for this type of bankruptcy. A married couple or individual may file. However, there are debt limits, which you must discuss with an attorney since they are subject to change from one year to the next. If 50 percent of your debt is from your farming business or if 80 percent of your debt is from your fishing business, you may qualify as long as you meet the other requirements.

Contact us now for a free consultation to see if Chapter 12 is the right solution for your debts. We serve Chico, Redding and many northern California cities.